Health Savings Accounts

Health Savings Accounts offer you control of your health care dollars. With significant tax advantages and individual ownership, you pay lower taxes and keep more of your money with an HSA.

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Benefits

Tax Savings—You Pay Less Income Tax!

Contributions are 100% tax deductible.
Earnings in your account are tax free.
Distributions for qualified medical expenses are tax free.

Ownership & Control

You Keep More Of Your Money!

If you change employers or insurance carriers, you take your HSA with you.
Unused contributions rollover each year and earn interest.
You have immediate access to your contributions via checks, debit card, or electronic bill pay.

The Right Prescription For Your HSA…

HSA Features…

No set-up fee, no annual fee
Simple enrollment
Knowledgeable customer service assistance
Payroll direct deposit
Unlimited check writing privileges
VISA debit card and ATM card with no foreign ATM fees
Online account access
Bill payment
Telephone Banker
Competitive NOW account rates
FDIC insured account
Monthly account statements
Year-end IRS reporting

How do I open a Wilson Bank & Trust HSA…

Enroll in a high deductible health plan (HDHP) with an insurance carrier of your choice. We are an independent administrator and custodian that establishes your HSA that is compatible with your insurance plan.
Complete a Wilson Bank & Trust HSA application. Applications can be obtained from your insurance provider or directly from Wilson Bank & Trust at www.wilsonbank.com or by calling us at 615-444-2265.
Please bring your completed application along with your initial contribution directly to your neighborhood Wilson Bank & Trust Community Financial Centers office near you.

Eligible Expenses

Eligible medical expenses are defined as those expenses paid for care as described in Sections 223 (d) of the Internal Revenue Code. Below are two lists (Reimbursable Medical Expenses and Non-Reimbursable Medical Expenses) which may help determine whether an expense is eligible for HSA reimbursement. The lists are intended to serve as a quick reference and are provided with the understanding that Wilson Bank & Trust is not engaged in rendering tax advice. For more detailed information, please refer to IRS Publication 502 titled “Medical and Dental Expenses,” Catalog Number 15002Q. Publications can be ordered from the IRS by calling 1-800-TAX-FORM (829-3676), or viewed, printed or downloaded in PDF format. If tax advice is required, seek the services of a CPA.

Reimbursable Medical Expenses:

Abdominal supports
Acupuncture
Air conditioner (when necessary for relief from an allergy or for relief from difficulty breathing)
Alcoholism treatment
Ambulance
Anesthetist
Arch supports
Artificial limbs
Autoette (when used for relief of sickness/disability)
Birth control pills
Blood tests
Blood transfusions
Braces
Cardiographs
Chiropractor
Christian Science practitioner
Contact lenses
Contraceptive devices (prescription)
Convalescent home (for medical treatment only)
Crutches
Dental treatment
Dental X-rays
Dentures
Dermatologist
Diagnostic fees
Diathermy
Drug addiction therapy
Drugs (prescription)
Elastic hosiery (prescription)
Eyeglasses
Fees paid to health institute prescribed by a doctor
FICA and FUTA tax paid for medical care service
Fluoridation unit
Guide dog
Gum treatment
Gynecologist
Healing services
Hearing aids and batteries
Hospital bills
Hydrotherapy
Insulin treatments
Lab tests
Lead paint removal
Legal fees
Lodging (away from home for outpatient care)
Metabolism tests
Neurologist
Nursing (including board and meals)
Obstetrician
Operating room costs
Ophthalmologist
Optician
Optometrist
Oral surgery
Organ transplant (including donor’s expenses)
Orthopedic shoes
Psychiatric care
Psychoanalysis
Psychologist
Special education
Sterilization
Stop-smoking programs
Telephone
Therapy
Transplants
Transportation
Trips
Tuition
Vasectomy
Vision correction surgery
Wheelchair
Wig
X-ray

Non-Reimbursable Medical Expenses:

Advance payment for services to be rendered next year
Athletic club membership
Automobile insurance premium allocable to medical coverage
Boarding school fees
Bottled water
Commuting expenses of a disabled person
Cosmetic surgery and procedures
Cosmetics, hygiene products and similar items
Diaper service
Domestic help
Funeral, cremation or burial expenses
Health programs offered by resort hotels, health clubs and gyms
Illegal operations and treatments
Illegally procured drugs
Maternity clothes
Non-prescription medication
Premiums for life insurance, income protection, disability, loss of limbs, sight or similar benefits
Scientology counseling
Social activities 3
Special foods or beverages
Specially-designed car for the handicapped other than an autoette or special equipment
Stop-smoking programs
Swimming pool
Travel for general health improvement
Tuition and travel expenses for a child to a particular school

Q:	What is a Health Savings Account?
A:	An HSA is an individual bank account that allows you to pay for current health expenses and save for future qualified medical and retiree health expenses on a tax-advantaged basis.
Q:	Why Should I invest in a Health Savings Account?
A:	If you or your employer are tired of the high costs of health insurance and would prefer to keep that money for yourself to spend on health expenses or save for the future, you should look into Health Savings Account.
Q:	Who is eligible for a Health Savings Account?
A:	To be eligible for a Health Savings Account, an individual must be covered by a High Deductibe Health Plan (HDHP), must not be covered by other health insurance (does not apply to specific injury insurance and accident, disability, dental care, vision care, or long-term care), is not eligible for Medicare, and can't be claimed as a dependent on someone else's tax return.
Q:	What is a High Deductible Health Plan (HDHP)?
A:	A High Deductible Health Plan is a health insurance plan with a minimum deductible of $1,000 (self-only coverage) or $2,000 (family coverage). The annual out-of-pocket (including deductibles and co-pays) cannot exceed $5,000 (self-only coverage) or $10,000 (family coverage). HDHPs can have first dollar coverage (no deductible) for preventative care and higher out-of-pocket (co-pays and coinsurance) for non-network services.
Q:	Who can contribute to a Health Savings Account?
A:	Contributions to HSAs can be made by either the employer or the individual, or both. If contributions are made by the individual, it is an "above-the-line" deduction. If contributions are made by the employer, it is not taxable to the employee (excluded from income).
Q:	How much can I contribute to a Health Savings Account?
A:	The maximum contribution for 2005 is the lesser of the deductible amount under the HDHP or $2,650 for individuals or $5,250 for family coverage. These dollar amounts will be adjusted for inflation each year.
Q:	Do Health Savings Account funds roll over year after year and get invested?
A:	Yes, any unused funds in a Health Savings Account roll over each year.
Q:	Who has control over the money in a Health Savings Account?
A:	With Wilson Bank & Trust as trustee, account holders have complete control over their funds. Other trustees may impose limits on accessibility.
Q:	Is there an IRS approved list of medical expenses from which I can use My HSA dollars?
A:	Yes, there is a list of allowable expenses provided on the home page of this website under "Eligible Expenses". If you would like a more thorough list provided by the Internal Revenue Service, go to www.irs.gov/pubirs-pdf/p502.pdf. In general, you can use your tax-advantaged HSA dollars on all medical, dental (indcluding braces for your children) and vision expenses, chiropractic visits, and even acupuncture, but not on your insurance premium, unless you are unemployed and are collecting Federal unemployment benefits.
Q:	Will I have to pay tax penalties on the monthly fees my HSA custodian deducts from my account?
A:	The IRS has ruled that nominal bank and custodial fees withdrawn directly from the account are allowable withdrawals, and therefore are not subject to taxes or penalties.
Q:	How do I submit a change of address or beneficiary?
A:	Contact Wilson Bank & Trust, or your employer representative for the appropriate form.
Q:	Can I use my Health Savings Account for non-medical expenses?
A:	Yes, you can spend money out of your Health Savings Account for non-medical expenses; however, you have to pay income tax and a 10 percent penalty for a non-medical withdrawal prior to age 65.